Aug 28, 2018
Recognized as a global leader in RegTech for blockchain, Coinfirm serves as a foundation for the safe adoption and use of blockchain. The Coinfirm AML/CTF Platform uses proprietary algorithms and big data analysis to provide structured, actionable data that solves compliance and transaction risk issues in blockchain and cryptocurrencies. The blockchain agnostic platform is currently used by anyone ranging from major financial institutions to exchanges. In addition, Coinfirm develops dedicated blockchain solutions such as the data provenance platform Trudatum that was recently integrated by the largest bank in CE.
Welcome to week 6 of the Crypto Alert of the Week series by AMLT, a series dedicated to documenting interesting or high profile frauds/hacks etc that recently happened and have been reported into the AMLT Network and show how the AMLT Network can help track and prevent it in the future.
With a constant influx of new, inexperienced, and sometimes downright greedy users looking for a quick return, many fraudsters have been attracted to the cryptocurrency market. One of the most simple yet common types is the "multiplier". Although not all multipliers are technically “scams” or “fraud”, a large amount are. Generally the process is, some sort of site tells cryptocurrency holders that they're a group of experienced traders/investors or have a large mining operation among other stories that guarantees astronomical returns within a very short period of time. Here’s an example below that we’re going to use throughout this Crypto Alert and AMLT Network use case. In this case the site claims a potential 100x return in 12 hours! There are a few very good ways to confirm whether one of these is true fraud or not and we’ll share one of them below as well.
These Bitcoin Multipliers highlight another of the countless potential ways that cryptocurrency users around the world can use the AMLT Network to help prevent these sort of actors from reaping the spoils of their dishonest work. So how did we confirm this one was in fact fraud? Below we show you how this process works and what is the end result through a Coinfirm AML Risk Report.
By looking at a few of the addreses that have paid into the “mulitiplier” address, none of them after an extended period of time received any funds back let alone profit.
Once the address and related proof (screenshot) has been submitted into the AMLT Network, the Coinfirm data analytics team analyzes and verifies if the data submitted is legitimate. If it is it gets submitted into the Coinfirm Platform with appropriate new flags and risk indicators. As you can see below in the most recently generated risk report on this address. Now any of the countless commercial users of the Coinfirm AML Platform around the world can reject these funds originating from fraudulent actions and help limit the incentive of bad actors to do them in the first place.
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The AMLT Team
AMLT is the token for the AMLT Network and Coinfirm AML/KYC Platform. The first solution allowing the global economy to provide data to fight ransomware, hacking, malware and other online fraud and scams touching the cryptocurrency economy. In return for valid data provided, AMLT Network Members are rewarded in AMLT that can then be used in various ways. Created by Coinfirm, a global leader in regtech for blockchain and cryptocurrency, AMLT not only creates the first system where entities can report addresses and evidence tied to nefarious actors in the economy, but AMLT token can be used for discounted services on the Coinfirm AML/KYC Platform that is already servicing countless ICOs and over 100 companies in both the cryptocurrency and traditional spaces. Network Members also receive privileged access to Coinfirm products such as our tools and panels, the AMLT knowledge pool with exclusive content and materials as well as additional benefits and features, helping them limit exposure to risk and increase transparency for themselves, their clients and the entire digital economy.
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